City leaders, who don't want Los Alamitos' businesses to bear any more hardships during lean times, plan to put a measure on the November ballot asking voters to reduce licensing fees. Council members this week unanimously agreed to offer a ballot measure that would eliminate the 5% annual increase in business licensing fees that voters put into place in 1988. The council instead proposes to increase the fees according to the annual cost-of-living index.

The City Council has given preliminary approval to join with two nearby cities in creating a new emergency dispatch center to hook up with a new countywide system. By creating a jointly run dispatch center with Los Alamitos and Cypress, each city will save about $60,000, Seal Beach City Manager Keith Till said. The center will enable the cities to join the new 800-megahertz countywide emergency dispatch system.

Officials for the city have agreed to accept $354,300 of $466,069 owed it by the county to settle a portion of its bankruptcy-related claims. The settlement also requires the county to return the remaining $111,769 from available cash within 20 years or with proceeds from its litigation with Merrill Lynch and KPMG Peat Marwick, whichever is available first. The remaining $1.53 million of the city's claims against the county are in dispute and have not been resolved.

Hoping to safeguard public funds in the wake of the county's bankruptcy, the City Council has approved strict new guidelines to keep city money out of risky investments. The revised investment policy, adopted Monday, limits the types of funds the city may invest in, restricts investment in long-term bonds and prohibits the city from borrowing money for the purpose of investing it.

Though expressing reluctance to do so, the City Council has approved Option A of the Orange County bankruptcy settlement. Officials said they will continue to evaluate that decision, however, until the judge overseeing the county's bankruptcy petition makes a final ruling. Under Option A, Los Alamitos would receive about 76% of the $2 million it had in the county's failed investment pool. Part of the remainder would be returned in recovery notes and repayment claims.

City officials are seeking a state grant that will be used to educate residents about the need to recycle used motor oil and encourage gas station operators to set up used oil collection centers. City Council members voted last week to join Seal Beach, La Palma and Cypress in applying for a $31,368 state grant for the project. If the grant application is approved, a panel of representatives from the four cities would oversee the project, officials said.

City officials said Monday that they are worried cities like Los Alamitos, which have money invested in the county portfolio but do not have emergency financial needs, may be left fighting for the fiscal crumbs when money from the failed Orange County investment fund is finally distributed. City Manager Robert C. Dunek said that the city has not requested an emergency distribution from the fund because the $2.

City Manager Robert C. Dunek today will update City Council members about the city's $2.2-million investment in the bankrupt county treasury and the efforts being made to recover the money. Dunek said the bankruptcy has so far not affected the city's daily operations, but the 1995-96 budget and critical projects such as street and park improvements could be harmed. Also, about $70,000 of the city's property taxes collected before the Dec. 6 county bankruptcy filing remain frozen, he said.

A housing improvement program for low- and moderate-income residents is at the top of the list of community projects city officials hope to launch in fiscal year 1995-96. The projects would be financed with U.S. Department of Housing and Urban Development's Community Development Block Grants, which are designed to revitalize neighborhoods, spur economic growth and provide facilities and services for low- and moderate-income families.

City officials are asking for about $575,000 from the Orange County Transportation Authority to pay for four proposed projects intended to increase traffic flow on some of the city's busiest streets. One of the proposed projects, approved by the City Council this week, is the widening of Los Alamitos Boulevard at Katella Avenue, one of the most congested city intersections.